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Friday, December 15, 2017

Refinery expansions

According to Petroleum Economist, there are projects and plans to increase global refinery capacity by 3.91 million barrels daily (mbd). Some involve expansion of current refineries and others are plans for new refineries. 

The greatest expansion plans or projects are in Asia and the Middle East (1.5 mbd). However, Petroleum Economist estimates that the refinery expansions could be greater than indicated in the table below. Iran is, for example, considering plans for a 0.18 mbd distillation unit either at the Abadan refinery or elsewhere. There are plans for the closure of some or all of the old existing distillation capacity at Abadan. But a four-phase expansion of Bandar Abbas is also planned, which could add some 0.6 mbd to its present capacity of 0.23 mbd by 2010. Additions at Tabriz, Arak and Isfahan are also targeted for completion by the same year. 

Kuwait also has plans for a new refinery of up to 0.6 mbd on stream in 2010, when the existing Shuaiba refinery will be shut down. Jordan has plans for a second refinery at Aqaba, possibly with Kuwaiti investment. Further advanced is Saudi Arabia’s refinery-investment programme, which will include a 0.4 mbd facility at Yanbu, and the redevelopment of the 0.4 mbd refinery at Rabigh. 

In August, India’s Reliance said that it plans to raise the capacity of its Jamnagar refinery from 0.66 mbd to 1.2 mbd by 2009, making it the world’s largest. Indonesia’s Pertamina has also announced outline plans for a new refinery with Chinese backing. 

The most notable development, according to the Petroleum Economist, is the plan to build the first new refinery in the U.S. for 30 years. Arizona Clean Fuels (ACF), a privately owned company, is aiming to construct a refinery of 0.15 mbd capacity at Yuma county. The firm plans to have the refinery operating by 2009.

(The graph includes 0.6 mbd in 2009 for the Jamnagar refinery.) 

Contact: Erik Ranheim